Triangle Home Values Up in 2014….2015 Predicted to be Better

The housing market in the Triangle improved its sales tally 4.5 percent in 2014 as investor and buyer activity fell back to normal rates of growth compared to the 24 percent increase of sales the year before.
Median and average home sale prices also improved 3.5 percent, according to Triangle Multiple Listing Service data — on par with the region’s historical growth averages before the housing bubble and recession.

The MLS data reflects information on properties in the 16 counties of the greater Triangle region, which also showed a large dip in inventory levels in December with only 10,673 units available for sale, or about 4.2 months of housing supply needed to sustain average market demand.
According to national housing economists, 2015 will be more of a wait and see year, and the rate of growth will depend on how much mortgage interest rates rise in the first half of 2015 and whether lenders ease their credit lending standards.

Clear Capital, a real estate research firm, is forecasting increases of 3 to 5 percent in home sales growth in 2015 with price growth moderating to 1 to 3 percent.

Kiplinger and the National Association of Realtors are more optimistic.
Kiplinger is forecasting 8 percent growth in existing home sales in 2015 and a 25 percent rise in new home sales nationally after an anemic 4 percent growth rate for new homes in 2014.

Lawrence Yun, chief economist for the National Association of Realtors, is forecasting a 7.4 percent increase in existing homes, a 37 percent increase in new home sales and a 4 percent increase in median home prices.

“Home prices have risen for the past three years cumulatively about 25 percent, which boosts confidence in the market and traditionally gives current homeowners the ability to use their equity buildup as a down-payment towards their next home purchase,” says Yun. “Furthermore, first-time buyers are expected to slowly return as the economy improves and new mortgage products are made available in the marketplace with low downpayments and private mortgage insurance.”

In the Triangle, pending sales were up 5.3 percent in December and the average days on market dropped 5.6 percent to 68 days compared to the same month the year prior when a home would be listed for sale an average 72 days.

Triangle MLS data includes sales of both new and existing homes.

Hoyle, Amanda J. (2015, January 15). Triangle home sales grew 4.5% in 2014; economists predict hotter market in 2015. Retrieved from http://www.bizjournals.com/